Unit 3: Business behaviour · WEC13/01

Edexcel International A-level Unit 3, October 2021

All 8 written questions and 6 multiple choice questions from Edexcel International A-level Unit 3 (October 2021), Business behaviour. Case studies: The global coffee market. Each question shows its marks and topic, and opens the question paper and mark scheme at the right page.

Question paper Mark scheme Examiner report

Section A

Q11 mark

Which one of the following is likely to be a benefit of this takeover for Electronic Arts?

AAn increase in contestability in the video games market
BA decrease in total costs of production
CAn increase in competition in the video games market
DA decrease in long-run average costs

Show the answer

The answer is D.

TopicRevenues, costs and profits

Question paper p.2 Mark scheme p.4 Examiner report p.5 Open in the tool

Q21 mark

2 The chart shows the market share for mobile virtual network operators (MVNOs) in Japan for 2019. Rakuten 15.6% Others 35.8% IIJ 13.2% UQ Comm. Biglobe 11.3% 4.6% NTT Comm. K-Opticom 10.5% 9.0% What was the five firm concentration ratio for MVNOs in Japan for 2019?

A48.6%
B50.6%
C59.6%
D86.4%

Show the answer

The answer is C.

TopicBusiness growth, mergers and market structure

Question paper p.2 Mark scheme p.4 Examiner report p.3 Open in the tool

Q31 mark

Which one of the following is the most likely impact of the introduction of the national minimum wage?

AThere will be N1 to N2 more agricultural workers employed
BThere will be an extension of demand for agricultural workers from Y to U
CThere will be a contraction of supply of agricultural workers from Y to V
DThere will be N1N2 unemployed agricultural workers

Show the answer

The answer is D.

TopicThe labour market

Question paper p.3 Mark scheme p.4 Examiner report p.3 Open in the tool

Q41 mark

4 The table shows the total costs of producing sports footwear by a firm in the USA. Units of output Total Cost ($) 0 12 1 16 2 19 3 22 4 27 5 33 6 40 7 48 Between which of the following outputs do diminishing returns start to set in?

A1-2 units
B3-4 units
C5-6 units
D6-7 units

Show the answer

The answer is B.

TopicRevenues, costs and profits

Question paper p.4 Mark scheme p.5 Examiner report p.3 Open in the tool

Q51 mark

5 India's net migration was -2.7 million in 2017. This caused a decrease in the supply of labour. Which other factor would also cause a decrease in India's supply of labour?

AAn increase in the level of welfare benefits
BA decrease in the productivity of labour
CAn increase in the size of the population
DA decrease in the price of capital

Show the answer

The answer is A.

TopicThe labour market

Question paper p.4 Mark scheme p.5 Examiner report p.3 Open in the tool

Q61 mark

6 Which one of the following combinations best describes a profit-maximising firm operating in a monopolistically competitive market in the long-run? Efficiency Profit

AProductively inefficient Normal profit
BProductively efficient Supernormal profit
CAllocatively inefficient Supernormal profit
DAllocatively efficient Normal profit

Show the answer

The answer is A.

TopicRevenues, costs and profits

Question paper p.5 Mark scheme p.5 Examiner report p.3 Open in the tool

Section B

Case study

The global coffee market

Extracts: Figure 1: Average world price of coffee beans, $ per kg, July 2017-May 2019 · Figure 2: World coffee production, million bags, 2015-2019 · Extract A: Global coffee bean production · Extract B: Coffee shop chain growth · Figure 1: https://www.indexmundi.com/commodities/?commodity=robusta-coffee&months=120 · Figure 2: https://www.statista.com/statistics/263311/worldwide-production-of-coffee/

Q7(a)Calculate2 marks

With reference to Figure 1, calculate the percentage change in the average world price of coffee beans from 1 July 2017 to 1 May 2019. You are advised to show your working.

Mark splitApplication 2

Question paper p.7 Mark scheme p.7 Examiner report p.3 Open in the tool

Q7(b)Explain4 marks

With reference to Extract A (line 12), explain what is meant by 'short-run shutdown point.'

Mark splitKnowledge 2Application 2

Question paper p.8 Mark scheme p.8 Examiner report p.3 Open in the tool

Q7(c)Analyse6 marks

With reference to Figure 2 and Extract A, analyse two possible reasons for the increase in supply of coffee beans between 2015 and 2019.

Mark splitKnowledge 2Application 2Analysis 2

Question paper p.9 Mark scheme p.9 Examiner report p.4 Open in the tool

Q7(d)Examine8 marks

With reference to Extract B, examine two barriers to entry into the US coffee shop market.

Mark splitKnowledge 2Application 2Analysis 2Evaluation 2

TopicPerfect competition and monopoly

Question paper p.11 Mark scheme p.10 Examiner report p.4 Open in the tool

Q7(e)Discuss14 marks

With reference to the information provided, discuss the reasons for the increase in Starbucks' profits in 2019. For one of these reasons, illustrate your answer with an appropriate cost and revenue diagram.

Mark splitEvaluation 6

Question paper p.13 Mark scheme p.12 Examiner report p.4 Open in the tool Draw it: monopolistic competition diagram Or: cost curves diagram

Section C

Q8OptionalEvaluate20 marks

For an industry of your choice, evaluate why many businesses have growth as their main objective. Illustrate your answer with an appropriate diagram(s).

Mark splitEvaluation 8

TopicBusiness objectives

Question paper p.16 Mark scheme p.15 Examiner report p.4 Open in the tool Draw it: cost curves diagram

Q9OptionalEvaluate20 marks

For an industry of your choice, to what extent is a monopoly market structure inefficient? Illustrate your answer with an appropriate diagram(s).

Mark splitEvaluation 8

TopicPerfect competition and monopoly

Question paper p.16 Mark scheme p.18 Examiner report p.4 Open in the tool Draw it: monopoly diagram Or: perfect competition diagram

Q10OptionalEvaluate20 marks

Evaluate measures to reduce the occupational and geographical immobility of labour.

Mark splitEvaluation 8

TopicThe labour market

Question paper p.16 Mark scheme p.22 Examiner report p.4 Open in the tool

Question text is quoted from the question papers, © Pearson Edexcel, for students’ private study. Open the official papers and mark schemes from the links on each question. Examiner insights are written with AI assistance and moderated by Finn.

Section A

Section B

The global coffee market

Section C

Other years of Edexcel International A-level Unit 3

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